Businessmirror August 04, 2018

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BIG DREAMS, BIGGER CHALLENGES MAKSYM YEMELYANOV | DREAMSTIME.COM

Seen as catalyst in ICT reforms, saga of 3rd telco shows up need for legislation, policy changes

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By Lorenz S. Marasigan

EGULATORY constraints will hound the entry of a new telco player in the Philippines, and without reforms in policies on digital real-estate management and other practices, what is deemed as the catalyst for change in the telecommunications space will struggle to compete with the “wellentrenched duopoly.”

Thus says Winthrop Y. Yu, who chairs the Internet Society of the Philippines. He believes the government must revisit regulatory policies to help the new entrant compete effectively against incumbents PLDT Inc. and Globe Telecom Inc. “Any new entrant will still have to cope with a regulatory environment that favors the dominant incumbents,” he told the BusinessMirror, noting “the fact that the duopoly effectively controls nearly 80 percent of assignable frequencies, and possible anticompetitive practices.” Based on government data, PLDT holds 400 megahertz (MHz) of the total spectrum holdings, while Globe has rights to 325 MHz. What remains is a swathe of

225 MHz of frequencies in the 700MHz, 2100-MHz, 2.5-gigahertz, 3.3-GHz and 3.5-GHz bands. In the country, spectrum— deemed as digital real estates that act as conduit for data transfer—is usually assigned, not auctioned. In other parts of the world, governments bid out frequencies to create additional revenue streams. Auctioning off frequencies is a two-pronged strategy that could help the government create more wealth for public use, and ensure that telcos would efficiently use the allocations that they secured.

‘Old telco era mindset’

BECAUSE of the old practice in the Philippines, some companies that

have legislative franchises to operate telco services have through the years “hoarded” swathes of frequencies only to sell them to incumbents. To recall, San Miguel Corp. held for many years roughly 310 MHz of spectrum on several bands, including the coveted 700-MHz frequency band. It was in the process of setting up its own telco with a potential partner—Telstra Corp. Ltd. of Australia—when it struck a buy-in deal with the two existing players after its talks with Telstra stalled over the issue of who should bear the regulatory burdens. The transaction freed up the spectrum holdings of San Miguel, and gave way for PLDT and Globe to hold more spectrum under a co-use

agreement, which was approved by the telco regulator. Spectrum is the real estate on which telecommunication operators develop their respective networks to deliver services to customers. The amount of spectrum assigned to a telco has an impact on the cost of the build capacity, overall network performance, ability to offer new multimedia services and general customer experience of wireless services.

‘Support DICT’

YU also called on the National Telecommunications Commission (NTC) to have a change in mindset Continued on A2

RAISING FUNDS THROUGH TERRORISM

ASG or IS? Same alphabet soup game on who’s to blame after Basilan blast

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By Rene Acosta

HE deadly explosion that ripped through Basilan City on Tuesday (July 31), killing 10 persons, including a suspected suicide bomber, was carried out with the use of ammonium nitrate and fuel oil as part of the strategy of the Abu Sayyaf Group (ASG) to raise money by way of international funding, a military officer said, belying initial claims it was the handiwork of the Islamic State. PESO EXCHANGE RATES n US 53.0080

Lt. Col. Gerry Besana, spokesman of the Armed Forces of the Philippines Western Mindanao Command, said that the Basilanbased cash-strapped terrorists have to shore up their coffers, as the military has remarkably succeeded in checking their moneymaking activities, including kidnapping. He said the ASG needed the bombing incident as a “bargaining chip” in order to raise funds from local and international supporters. Hence, the group carried out the bombing. Before it could be actually implemented to inflict casualties by the hundreds in the heart of the city as planned, however, security forces in the area were able to intercept the van loaded with the explosive materials, Besana added.

The massive explosion was carried out, ironically, just days after President Duterte called on the ASG terrorists for talks, and after the Moro Islamic Liberation Front confidently declared that the Bangsamoro Organic Law (BOL) will isolate terrorism in Mindanao.

IS or ASG?

GOVERNMENT forces inspect a damaged military outpost after a bomb exploded in a van in Lamitan, Basilan, southern Philippines, on July 31, 2018. A bomb-laden van driven by a suspected Abu Sayyaf militant went off in a powerful blast on Tuesday in a brazen attack that reignited terrorism fears. AP

WITHOUT precluding the outcome of the investigation, military officials have reason to believe that the bombing was perpetrated by the ASG, contrary to the claim of the Islamic State that it was behind the bombing. While the blast may be powerful enough, this is not the first time that the ASG has carried out such bombing with the use of ammonium nitrate. Continued on A2

n JAPAN 0.4748 n UK 69.0164 n HK 6.7531 n CHINA 7.7518 n SINGAPORE 38.7344 n AUSTRALIA 39.0033 n EU 61.4151 n SAUDI ARABIA 14.1347

Source: BSP (August 3, 2018 )


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